Unum Group Reports Q3 2026 Financial Results and Updates Full-Year Guidance

Executive Summary

On November 3, 2026, Unum Group (NYSE: UNM) filed a Form 8-K under Item 2.02 reporting its financial results for the third quarter ended September 30, 2026.

Key Financial Highlights

• GAAP Net Income (Loss): Reported a net loss of $(419.7) million (or $(2.65) per diluted common share), compared to net income of $39.7 million ($0.23 per diluted share) in Q3 2025.
• Adjusted Operating Income: After-tax adjusted operating income totaled $349.0 million (or $2.20 per diluted common share), down from $479.4 million ($2.81 per diluted common share) in the prior-year period.
• Investment Impairments: Net loss includes a before-tax net investment loss of $853.0 million, driven by impairment losses recognized due to the intent to transfer assets supporting the 2026 Fortitude Re long-term care reinsurance transaction.
• Segment Performance:
  • Unum US: Adjusted operating income fell 35.2% to $315.3 million, pressured by higher claim submissions and elevated benefit ratios in group disability (67.1% vs. 47.8% in Q3 2025).
  • Colonial Life: Adjusted operating income increased 35.0% to $169.4 million, supported by premium growth, higher net investment income, and favorable claims experience.
  • Unum International: Adjusted operating income declined to $0.2 million from $44.2 million, affected by higher group long-term disability incidence and unfavorable reserve assumption updates.
  • Closed Block: Reported an adjusted operating loss of $135.6 million, improving from a loss of $682.3 million in Q3 2025.

Capital Management & Balance Sheet

• Share Repurchases & Dividends: Repurchased 2.1 million common shares for $202.0 million and distributed $80.1 million in dividends in Q3, bringing year-to-date capital deployment to $1,038.5 million.
• Book Value: Book value per share stood at $68.90 (+6.7% year-over-year); book value per share excluding AOCI was $76.73 (-0.9% year-over-year).
• Capital Adequacy: Holding company liquidity stood at $1.38 billion, with a weighted average risk-based capital (RBC) ratio of approximately 485%.

Guidance & Outlook

Unum updated its definition of after-tax adjusted operating income following discussions with the SEC staff to include annual reserve assumption updates and refinements. For full-year 2026, Unum expects after-tax adjusted operating income per share between $8.30 and $8.50.